Code of Governance for NPO’s

Code of Governance

AMCARE has been invited by the South African Institute for Advancement to subscribe to The Independent Code of Governance for Non-Profit Organisations in South Africa and has accepted the invitation. This now means that AMCARE commits to the values and principles in the Independent Code.

A summary of The Independent Code of Governance for Non-Profit Organisations in South Africa

The Independent Code of Governance for Non-Profit Organisations in South Africa, consists of a set of principles, values and responsibilities intended to guide and inform the way organisations are managed and conduct their affairs. It is also intended to serve as a standard or measure to assess performance, and guide members of governing boards, and others who carry responsibility for governance. The code includes 8 fundamental values; 6 leadership principles; and 5 fiscal and legal principles to which signatories are asked to commit too.

1. Ensuring adherence to values

  • Value One = Fidelity to Purpose
    The fundamental responsibility of the Board of an NPO is to endorse, practise, and require a commitment to the core values that are inherent in the African philosophy described as “Ubuntu”
  • Value Two = Altruism and Benevolence
    An NPO’s resources, energies and activities must be devoted to promoting its public benefit purpose and not to any personal or private objective.
  • Value Three = Integrity
    The underlying motivation must be one of public interest, not self-interest.
  • Value Four = Optimising Resources
    The Board must act responsibly and effectively in ensuring that valuable and limited resources are spent in an appropriate manner.
  • Value Five = Conflicts of Interest and Self-Dealing
    A fundamental principle and value of NPO Governance is the avoidance of conflicts that arise when a person in a position of trust makes a decision or enters into a contract from which they themselves, or friends, relatives or associates, stand to benefit.
  • Value Six = Equality and Non-Discrimination
    It is the responsibility of the Board to take pro-active steps to prevent unfair discrimination in the conduct of an organisation, including discrimination that may be based on grounds of race, gender, or disability.
  • Value Seven = Democracy and Empowerment
    In the conduct of its affairs and in its relationships with each of its stakeholders, an NPO must demonstrate a clear commitment to democratic process and decision-making.
  • Value Eight = Independence and Impartiality
    A public benefit purpose implies that all eligible beneficiaries must be treated equally and fairly, without special favour or prejudice.

2. Exercising leadership

  • Leadership:  Principle One = Vision, Purpose and Values
    It is the responsibility of a Board to ensure that the vision, purpose and values of the organisation are clearly defined.
  • Leadership: Principle Two = Accountability and Transparency
    A critical responsibility of the Board is to ensure commitment to Accountability and Transparency.
  • Leadership: Principle Three = Fundraising, Sustainability and Risk
    It is the Board’s responsibility not only to monitor expenditures and appropriation of funds, but also to ensure that an organisation continues to be adequately funded.
  • Leadership: Principle Four = Collaboration and Synergy
    NPOs should act collaboratively and cooperate with other similar entities–including official government welfare agencies.
  • Leadership: Principle Five = The Board and Other Governance Structures
    Board members should be recruited with due regard to a number of relevant factors, including their knowledge, skills, diversity, and availability.
  • Leadership: Principle Six = Procedural Formalities
    Procedural formalities prescribed in founding documents (Constitution) must be thoroughly observed.

3. Ensuring Fiscal and legal compliance

  • Legal/Fiscal Principle One = Establishment and Incorporation
    The form of legal structure in terms of which an NPO is established may determine how and when the responsibilities of governance arise.
  • Legal/Fiscal Principle Two = Administrative and Procedural Requirements
    Each form of alternative legal structure, with the exception of the common law structure of a Voluntary Association, has its own specific reporting obligations to comply with applicable laws and regulations.
  • Legal/Fiscal Principle Five = Other Legislative and Regulatory Compliance
    The Board’s responsibility for governance includes a responsibility to ensure that the organisation remains compliant with all its statutory duties and obligations.
  • Legal/Fiscal Principle Three = NPO Act – Consequences and Benefits of Registration
    Provision is made under the Nonprofit Organisations Act for the voluntary registration of NPOs, irrespective of the particular form by which they are constituted.
  • Legal/Fiscal Principle Four = PBO Status – Fiscal Benefits and Conditions
    It is a fundamental responsibility of the Board to ensure that such privileges are not squandered or abused.

HughAmHCode of Governance for NPO’s